New York State utility regulators approved demand response program rules that it said would help create innovative energy storage programs that advance the state’s goal of 1,500 MW of storage by 2025.

Adding more energy storage into the state’s grid is expected to maximize the benefits of renewable energy sources such as solar and wind and will help to ensure they are available when needed to meet peak demand for electricity.

In its 81-page order, the Public Service Commission said that the current DLM programs only pay for yearly performance and result in a bias toward short-term, low-capital investment. It said a move toward  multi-year payment would result in more participation and investment.

In its decision, the commission modified dynamic load management (DLM) implementation plans for the state’s six major electric utilities. The plans implement two new DLM program options to provide incentive payments for participants for a period of three years or longer.

The order also directs two procurement components. The first is a day-ahead peak shaving Term-DLM Program in which participants will provide load relief on at least 21 hours advance notice during a specified four-hour period. The second is a reliability and peak shaving Auto-DLM Program in which participants will provide load relief on at least 10 minutes advance notice (except for off-peak charging hours) for a period of four hours.

New York State currently has around 93 MW of energy storage capacity deployed. Another 841 MW of storage capacity is in the pipeline, in addition to 1,400 MW of traditional pumped hydro storage.